2026 commercial real estate outlook
Turning the corner to capitalize on a generational opportunity
In last year’s commercial real estate outlook, we anticipated that 2025 could mark a recovery for the global CRE industry—buoyed by an expected return of deal activity, more favourable lending terms, greater industry collaboration, and advances in artificial intelligence. As we write a year later, it hasn’t exactly played out that way, largely due to an unpredictable global macro environment, which may affect how soon, and to what degree, the industry could fully recover in the next 12 to 18 months.
Trade and regulatory uncertainties have complicated decision-making, prompting some leaders in the CRE industry to rethink their approach. We do not expect this to abate any time soon as trade negotiations and legal challenges continue. That said, opportunities for growth likely exist—for those who understand the industry’s geographic, asset, and macro-level nuances, and remain agile and forward-thinking.
Key takeaways
- Revenue growth: Nearly 90% of respondents expect their company's revenues to increase, with 60% anticipating growth over 5% year over year.
- Budget increases: There is a significant shift towards increased budgets, especially in data and technology, with 81% of respondents identifying this area for focused spending.
- Macroeconomic concerns: Elevated interest rates, cyber risk, changes in tax policies, and cost of capital are identified as the biggest factors impacting financial performance in the next 12 to 18 months.
- Investment opportunities: High-growth property sectors such as industrial and manufacturing, multifamily, and hotel and lodging assets are seen as top opportunities.
- Sustainability focus: A strong emphasis on deep energy retrofits and sustainability strategies, with 76% of respondents planning significant retrofits in the next 12 to 18 months.
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